If you are considering retirement planning in Oswestry, you may be keen to find out more about what the new government means for the wider UK pensions industry.
There is already a debate under way between two schools of thought: those who believe in ‘pension stability’ and minimal change to savings, and ‘reformers’ who think retirement outcomes are in need of a shakeup.
Some in the industry are calling for the government to map out a plan to prioritise savings adequacy, boosting financial security in retirement by implementing the auto-enrolment (AE) extension bill for people aged 18+. It seems highly likely that AE contributions will rise in future, including for the self-employed, to as much as 12%. The question then is how to balance those with other more immediate financial commitments, such as building up reserve savings or a first home deposit.
The government has thus far committed only to a full review of the pensions landscape. While the details have yet to be fleshed out, there is every prospect of pension assets being directed towards investment opportunities in the UK. The review may take the form of a lifetime savings commission that looks at how pension schemes not only benefits members, but also wider growth in the economy.
Pension providers have additionally urged any commission to look at the role of the state pension, innovation in decumulation, lifetime financial resilience, pensions tax relief, housing benefits and the cost of long-term care.
